Dedicated to Deposits: Deals, Data, and Discussion

2.75% 7-Month CD & Money Market Special at Webster Bank in the Northeast

POSTED ON BY

Webster Bank
Update 4/18/09: These promotions are no longer listed at Webster Bank's website.

Webster Bank is offering two competitive deals: a 2.75% money market savings account with the rate guaranteed to 6/30/09 and a 2.75% APY 7-month CD. Minimum deposit for both is $5,000 of new money. These specials are listed at the bank's promotion page as of 4/03/09. According to this promotion page, these specials are scheduled to last through 4/30/09. For the money market promotion, the 2.75% APY applies to all balances. After 6/30/09, the rates are subject to change with a tiered rate structure.

The bank had a similar promotion in October 2008. When I contacted the bank at that time, I was told people in any state can apply online or by phone. For this new promotion, there is an "Open an Account" button that leads to an online application. For those who apply online or by phone, they'll send you the new account package. You'll need to mail the signature card with a check and a photo copy of your driver's license. There is no hard credit inquiry. Readers who had applied for the checking earlier in the year when the bank was offering a sign-up bonus verified the lack of a hard pull.

Branches are located in Connecticut, Massachusetts, Rhode Island and in Westchester County, New York.

The bank's rating for safety and soundness has dropped a little since I reported on this bank in October. It now has a 3 star rating (adequate) at BauerFinancial based on 12/31/08 financial data. Webster Bank has been FDIC insured since 1960 (FDIC Certificate # 18221). It's a fairly large bank with $17.4 billion in assets.

Thanks to the reader who mentioned this special in the comments.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
  Tags: Massachusetts, New York, money market accounts, CD rates, Rhode Island, Webster Bank, Connecticut

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Comments
5 comments.
Comment #1 by Anonymous posted on
Anonymous
does the bank have any ACH capabilities?
if the deposit is with a check how do i take money out?

1
Comment #2 by Anonymous posted on
Anonymous
Yes, bank has ACH system for external transfers.

See:

https://www.websteronline.com/Help/online_banking.htm#external_transfer

1
Comment #3 by andrew (anonymous) posted on
andrew
just signed up - seemed easy enough. please be aware that aside from a minimum $5000 opening deposit, you need to keep a $2500 minimum balance to avoid a $10/month fee. However, you can drop the initial $5000 to $2500 and still earn 2.75% (or even to $.01, but you would get hit with the fee despite earning 2.75% on your $.01.) The minimum of $2500 is debatable as the website says minimum of only $1500 with $6/month fee, but consumer fee schedule with application says the former. Also, please be advised of $15 fee if account is closed within 90 days. The 90 days works out conveniently with the 6/30 end date of the promotional rate.

1
Comment #4 by Anonymous posted on
Anonymous
Webster has serious technical and customer service issues. I was unable to open an account on-line, and customer services wasted 30 minutes of my time trying to do exactly what I had already done -- of course with the same failure. They began insisting I visit a branch, none of which are convenient.

1
Comment #5 by Anonymous posted on
Anonymous
Tried to open the 7-month special CD online and got a message that my information couldn't be verified so I had to come into a branch to open the account. I live in FL.

Given the earlier post regarding an online application failure - is it possible that this is how the bank limits those they will extend the special rate too (their standard rates are pretty low)? This is what WAMU used to do.

1